Category Archives: REITS

Buy These 3 High Yield REITs Increasing Dividends in January

To build momentum from your income stocks going into the new year, consider buying into those REITs that should announce higher dividend rates in the first month of 2018. Each month I like to list those real estate investment trusts (REITs) that should announce higher dividend rates in the upcoming months. This knowledge can give you a jump on the rest of investing public, which will be surprised when the positive news is announced.

I maintain a database of about 130 REITs. With it I track current yields, dividend growth rates and when these companies usually announce new dividend rates. Most REITs announce a new dividend rate once a year, and then pay that rate for the next four quarters. Currently about 90 REITs in my database have recent and ongoing histories of dividend growth. Out of that group, higher dividend announcements will come from different REIT companies during almost every month of the year. With the potential of a Fed interest rate hike, the prospects of higher dividend payments coming in January will help to offset any share price disruptions resulting from announcements out of the Federal Reserve Board.

Related: Add This Unique REIT to Your Portfolio for Dividend Safety

My list shows three companies that historically announce higher dividends in January and should do so again this year. Investors will start earning the higher payouts in the new year. But remember, you want to buy shares before the dividend announcement to get the benefit of a share price bump caused by the positive news event. Here is the list of REITs to consider:

Apartment Investment and Management (NYSE: AIV) is a mid-cap sized REIT that owns and operates about 140 apartment communities. About 40% of the company’s properties are in coastal California, with the balance spread across major U.S. metropolitan areas. Last year, AIV increased its dividend by 9.0%. Cash flow growth has been comparable in 2017, and I forecast an 8% to 10% dividend increase in January. The new dividend rate announcement will come out in late January with a mid-February ex-dividend date and payment at the end of February. AIV yields 3.3%.

EPR Properties (NYSE: EPR) focuses its real estate investments in three different business sectors. Primary is the ownership and triple-net leasing of entertainment complexes and multiplex theaters. The second sector is the ownership of golf and ski recreation centers, also triple-net leased. The third sector is the construction, ownership and leasing of private and charter schools. EPR pays monthly dividends, and has grown the dividend rate by an average of 7% per year for the last six years. In 2017 the company was active in both acquisitions and new developments. The new dividend rate is announced in mid-January, with an end of January record date and mid-February payment. EPR currently yields 6.0%.

Welltower Inc (NYSE: HCN) is a large cap healthcare sector REIT. The company owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom. The portfolio is divided into three segments consisting of: Seniors housing and post-acute communities, and outpatient medical properties. Triple-net properties include independent living facilities, independent supportive living facilities, continuing care retirement communities, assisted living facilities, care homes with and without nursing, Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Outpatient medical properties include outpatient medical buildings. Welltower has increased its dividend every year since 2009, with a modest 1.2% increase to start 2017. I expect a 2.0% to 2.5% increase to be announced in January. The announcement will come out at the end of the month, with an early February record date and payment around February 20. The stock yields 5.1%.

Any one of these three stocks would be a great addition to your dividend growth portfolio. You see, it’s not just important to include high-yield stocks that give you income now, but to hold stocks with a strong history of growing their dividend year after year. It’s like getting a raise every… that you didn’t have to ask the boss for.

These are the same kinds of stocks that I recommend as a core part of my high-yield income system called the Monthly Dividend Paycheck Calendar. It’s a system used by over 6,000 income investors right now to produce average monthly paydays upwards of $4,000 in extra income. And it’s helped to solve a lot of income problems and retirement worries.

Quality REITs need to be a core component to your income portfolio. Not only do you get the high yields but you also enjoy rising dividends and as we’ve seen from historical examples, share price gains as an added bonus. There are several best in class REITs in the portfolio of my Dividend Hunter service which features the Monthly Dividend Paycheck Calendar.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.

Buy These 3 High Yield REITs Increasing Dividends in January

To build momentum from your income stocks going into the new year, consider buying into those REITs that should announce higher dividend rates in the first month of 2018. Each month I like to list those real estate investment trusts (REITs) that should announce higher dividend rates in the upcoming months. This knowledge can give you a jump on the rest of investing public, which will be surprised when the positive news is announced.

I maintain a database of about 130 REITs. With it I track current yields, dividend growth rates and when these companies usually announce new dividend rates. Most REITs announce a new dividend rate once a year, and then pay that rate for the next four quarters. Currently about 90 REITs in my database have recent and ongoing histories of dividend growth. Out of that group, higher dividend announcements will come from different REIT companies during almost every month of the year. With the potential of a Fed interest rate hike, the prospects of higher dividend payments coming in January will help to offset any share price disruptions resulting from announcements out of the Federal Reserve Board.

Related: Add This Unique REIT to Your Portfolio for Dividend Safety

My list shows three companies that historically announce higher dividends in January and should do so again this year. Investors will start earning the higher payouts in the new year. But remember, you want to buy shares before the dividend announcement to get the benefit of a share price bump caused by the positive news event. Here is the list of REITs to consider:

Apartment Investment and Management (NYSE: AIV) is a mid-cap sized REIT that owns and operates about 140 apartment communities. About 40% of the company’s properties are in coastal California, with the balance spread across major U.S. metropolitan areas. Last year, AIV increased its dividend by 9.0%. Cash flow growth has been comparable in 2017, and I forecast an 8% to 10% dividend increase in January. The new dividend rate announcement will come out in late January with a mid-February ex-dividend date and payment at the end of February. AIV yields 3.3%.

EPR Properties (NYSE: EPR) focuses its real estate investments in three different business sectors. Primary is the ownership and triple-net leasing of entertainment complexes and multiplex theaters. The second sector is the ownership of golf and ski recreation centers, also triple-net leased. The third sector is the construction, ownership and leasing of private and charter schools. EPR pays monthly dividends, and has grown the dividend rate by an average of 7% per year for the last six years. In 2017 the company was active in both acquisitions and new developments. The new dividend rate is announced in mid-January, with an end of January record date and mid-February payment. EPR currently yields 6.0%.

Welltower Inc (NYSE: HCN) is a large cap healthcare sector REIT. The company owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom. The portfolio is divided into three segments consisting of: Seniors housing and post-acute communities, and outpatient medical properties. Triple-net properties include independent living facilities, independent supportive living facilities, continuing care retirement communities, assisted living facilities, care homes with and without nursing, Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Outpatient medical properties include outpatient medical buildings. Welltower has increased its dividend every year since 2009, with a modest 1.2% increase to start 2017. I expect a 2.0% to 2.5% increase to be announced in January. The announcement will come out at the end of the month, with an early February record date and payment around February 20. The stock yields 5.1%.

Any one of these three stocks would be a great addition to your dividend growth portfolio. You see, it’s not just important to include high-yield stocks that give you income now, but to hold stocks with a strong history of growing their dividend year after year. It’s like getting a raise every… that you didn’t have to ask the boss for.

These are the same kinds of stocks that I recommend as a core part of my high-yield income system called the Monthly Dividend Paycheck Calendar. It’s a system used by over 6,000 income investors right now to produce average monthly paydays upwards of $4,000 in extra income. And it’s helped to solve a lot of income problems and retirement worries.

Quality REITs need to be a core component to your income portfolio. Not only do you get the high yields but you also enjoy rising dividends and as we’ve seen from historical examples, share price gains as an added bonus. There are several best in class REITs in the portfolio of my Dividend Hunter service which features the Monthly Dividend Paycheck Calendar.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.


Source: Investors Alley

3 High Growth REITs For Profits in an Amazon World

The Thanksgiving weekend marks the official start to the Christmas buying season. There is Black Friday on the day after and now Cyber Monday on the following Monday. The Black Friday to Cyber Monday weekend is one of the biggest shopping events of the year and each year online sales take a larger portion of the take. According to Forbes in 2016, online sales for the weekend increased by 16.4%. Also, according to a Forbes article, this year total retail Thanksgiving weekend sales are forecast to increase by 47% with online sales grabbing a 40% share.

The point to remember is that when a shopper buys something online, the Internet does not magically delivery it to the buyer’s home. There is an extensive infrastructure network that makes sure an online sale is filled and delivered. There is a chain of types of commercial real estate involved from the time an online order to buy is placed until that item is delivered to the buyer.

If you are like me, you might have trouble with buying shares of Amazon.com, Inc. (Nasdaq: AMZN), which trades at a P/E of near 300 and the company’s business model seems focused on how low they can cut profit margins to steal no-profit sales from other retailers.

An alternative way to invest and profit from Amazon and the growth in online sales is to own shares of the real estate investment trusts (REITs) that provide the warehouse space needed to fill and deliver online orders. These REITs can grow right along with the growth in online sales regardless of who is doing the selling. The difference is they can do it profitably, pay attractive dividends to investors and grow those dividends over time. Here are three REITs that directly benefit from the growth in online retail sales.

Equinix, Inc. (Nasdaq: EQIX) owns and leases spaces in the datacenter properties it owns. The company has a global footprint with 180 data centers located on every populated continent. Equinix converted to REIT status in late 2014 and started paying dividends for the first quarter of 2015.

Growth is derived from the need for more Internet communications and data computing power. This is directly tied to the growth in online retail sales. Free cash flow reported as funds from operations (FFO) and the dividend are expected to grow at a low teens rate.

Data center and growth focused REIT expert Bill Stoller rates EQIX as his highest conviction REIT for 2018. The stock currently yields 1.7%.

Related: 5 REITs Raising Dividends in December

Monmouth Real Estate Investment Corp (NYSE: MNR) is an industrial property REIT that owns 108 warehouse and logistics properties. Monmouth is unique in that 54.5% of its revenue comes from lease contracts with leases from FedEx Ground, FedEx Express, and FedEx Supply Chain Services. To be blunter, Monmouth Real Estate is a significant landlord for FedEx. FedEx has evolved into a dominant logistics company including delivery of online sales purchases. Monmouth’s industrial properties are “mission critical” for the processing and delivery of online retail sales. The company recently boosted its quarterly dividend by 6.25%. The stock yields 3.9%.

With a $35 billion market cap, Prologis Inc (NYSE: PLD) is the largest industrial REIT. The company is the world’s leading owner, operator and developer of logistics real estate. It is likely that almost every product sold by online retailers passes once or more through a Prologis owned property.

The company forecasts a 162% projected growth of e-commerce sales from 2015-2020. Company presentations point out that e-commerce business requires approximately three times the warehouse floor space compared to brick and mortar retailers. Online sales do not have stores, but they still require a lot of commercial real estate space to operate their businesses. The difference is that space is in industrial warehouses instead of stores.

For Prologis, the growth in e-commerce and the other logistics businesses it supports with allow the company to growth profits, FFO and dividends at a low mid-teens growth rate. The stock yields 2.6%.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.


Source: Investors Alley 

This Could Earn You $2,500 in Monthly Income in 2018

Today we’re going to take on one of the biggest investing myths there is—and expose this so-called “gospel” for the dangerous falsehood it really is.

It goes like this: diversification protects you from big losses in a downturn, but that “shield” costs you in the form of income and missed gains.

Well, I’m here to tell you that this statement couldn’t be more wrong. The truth is, you can have both.

I’ll tell you how in a moment. Then I’ll show you 6 unsung funds that hand you instant diversification plus market-beating gains and a special extra bonus: a dividend yield that triples up the payout on the average S&P 500 stock.

That’s right: a retirement-friendly 6% cash payout! Enough to hand you $2,500 a month on a $500,000 investment.

I know this sounds like a tall order, but it’s 100% achievable, even, dare I say, easy.

But before we go further, let’s spell out exactly what we mean by “diversification.”

For a lot of people, it simply means buying a fund that holds a lot of stocks, like the SPDR S&P 500 ETF (SPY). The thinking goes something like this: “I’ve got 500 stocks, so there’s no way I can lose a ton of cash, right?”

Wrong.

The problem is that this isn’t real diversification. Sure, you’ve got stocks in 500 companies—but you’re still holding only stocks. And the reality is that stocks go down more than any other investment during rough economic times.

In the chart below, we’ve got 6 asset classes that would give you a diversified portfolio if you held all of them. They are: US Treasuries, municipal bonds, preferred stocks, corporate bonds, high-yield (or “junk”) bonds and common stocks.

(You can go even further and add international exposure—including in the one part of the world I pounded the table on in my October 25 article—but for simplicity, we’ll keep the focus on the good old U.S. of A. today.)


Source: Contrarianoutlook.com; all calculations are from recent peak to bottom prices during downturns from 1979–2017.

As you can see, the maximum loss from the highest level is massive for common stocks—a whopping 56.8% drop!

It’s no surprise that Treasuries see the smallest loss, since federal government bonds are the safest investment on earth. Municipal bonds are pretty close, so their similar decline makes sense. And corporate debt instruments—preferreds and bonds—are snugly in the middle, with junk bonds the worst of them all.

Again, no surprises here.

But what you should really pay attention to is how adding these different asset classes together protects your portfolio from a huge loss. Even if you don’t cash out during a bear market, like a lot of retirees were forced to in 2007–09, you still face an uphill battle to recover those losses.

Why? Because a 50% portfolio loss means you’ll need a 100% gain to make up for it! And if your stock portfolio fell 56.8%, you’d need 131.5% just to get back to where you started!

This is exactly why savvy investors don’t just buy stocks; you need a lot of different asset classes to protect your hard-earned—and hard-saved—cash.

Deciphering the Diversification Riddle

So let’s go ahead an address the question of diversification and the size of our return now—because the answer isn’t as straightforward as you’d think.

If you just buy passive index funds, the answer is, yes, diversification will depress your return. To demonstrate this, let’s go back to the indexes for these 6 asset classes and see how they’ve performed over the last 8 years.

The Clear Winner: Stocks

With gains more than double the average of our other 5 asset classes, the S&P 500 was the clear winner. So if you bought equal amounts of each of these assets in 2010 and held them to today, your profits would be 54%—much lower than you’d get from stocks alone:


Source: Contrarianoutlook.com

So if you just diversify by tracking the indexes, you’re going to leave a lot of money on the table. That’s the price of smaller declines during bear markets.

But before you start questioning whether you should diversify into these other 5 investments at all, read on, because there’s a better answer—one that gives you the market-beating gains, income and downside protection I mentioned off the top.

I’m talking about…

The CEF Alternative

The answer to the diversification riddle is simple: skip the indexes and go back to the good old-fashioned strategy of picking winning funds managed by superior teams.

If that sounds outdated, keep in mind that this approach not only yields a more diversified portfolio but also a superior return relative to just buying the indexes. It also delivers a higher income stream, to the tune of $2,500 a month on a $500,000 investment!

This, by the way, is why billionaires and professional investment managers prefer this approach to the passive index fund craze the middle class is being herded into.

And the best way to do it is through closed-end funds, or CEFs. (If you’re unfamiliar with these funds, click here to check out my complete primer on them—including how they can triple your income and give your gains a continuous yearly boost.)

CEFs are a small group of funds that provide a large income stream while delving into other investments that go well beyond stocks. And the best ones offer superior returns, too.

To prove this, I’ve taken a top-notch fund from each asset class and blended them into a diversified portfolio.

These funds are: the Western Asset Managed Municipals Fund (MMU) for muni bonds, the JH Tax-Advantaged Dividend Fund (HTD) for stocks, the PIMCO Corporate & Income Opportunity Fund (PTY) for corporate bonds, the Neuberger Berman High Yield Strategies Fund (NHS) for junk bonds and the JH Premium Dividend Fund (PDT) for preferred stocks.

There isn’t a CEF for US Treasuries, so to pick up that part of the portfolio, we’ll add the iShares 20+ Year Treasury Bond ETF (TLT). That gets us a 6-fund portfolio with exposure to all the major asset classes the smart money focuses on.

Now, if we had bought these 6 funds 8 years ago, what kind of returns would we have bagged?

The answer: big ones.

Massive Returns Across the Board

This “best-of-breed” portfolio includes 3 funds that crush S&P 500 index funds, and all 6 funds beat their indexes. On average, this portfolio delivered a 154.2% total return!


Source: Contrarianoutlook.com

Not only is our diversified CEF investment giving us the diversity we need to avoid the extreme crashes that strike common stocks, but we’re also getting a superior return—154.2% versus the S&P 500’s 142.5%.

We’re also getting a superior cash flow from this portfolio, too. On average, these funds pay a 6% dividend yield, so we’re getting a bigger income stream than the S&P 500 while also facing a lower risk of a major loss.

The bottom line? Not only is diversification an important defense, but it can also be an incredible offense that boosts your wealth.

Michael Foster has just uncovered 4 funds that tick off ALL his boxes for the perfect investment: a 7.4% average payout, steady dividend growth and 20%+ price upside. — but that won’t last long! Grab a piece of the action now, before the market comes to its senses. CLICK HERE and he’ll tell you all about his top 4 high-yield picks.

Source: Contrarian Outlook

9 REITs Ready to Raise Their Payouts This December

“First-level” investors – those who buy and sell on headlines – mistakenly believe that real estate investment trust (REIT) profits will suffer if rates rise.

They’re wrong. And today, we’ll highlight nine REITs that are “raising their rents” as rates rise. As their tenants pay more, these firms will in turn pay their shareholders more in dividends.

Which means their share prices will follow suit, and move higher, too.

Sure, in the short run, the “rates up, REITs down” theory puts on quite the show. When the 10-Year Treasury’s yield rises, REITs usually fall. And when its yield drops, REITs usually rally. This inverse relationship tends to hold up over multiple days, weeks and even months:

A Short-Run Seesaw Between REITs and T-Bill Yields

The theory backing up this price action says that, because REITs borrow money to grow their property empires, they need cheap cash. Yet this isn’t a “must have” criterion for all such landlords. If their costs increase, they can simply raise the rents when the lease is up for renewal, passing on their higher borrowing costs to tenants.

For example, let’s look at a three-year period starting in May 2003 when the 10-year rate climbed two full basis points – from 3.2% to 5.2%. Based on recent REIT price action, you’d expect most firms would be out of business!

But blue chips such as mall operator Simon Property Group (SPG) and self-storage stalwart Public Storage (PSA)not only survived the rate increases – they thrived:

The Best REITs Climbed With Rates

Why? Because rising rates signaled a booming economy – one in which these firms had no problem raising their rents. Both boosted dividends while investors in each stock enjoyed 129% total returns over the three-year period!

9 REITs That Will Thrive This Rate Hike Cycle

Firms having no problem issuing rent increases today are easy to spot. They report higher and higher funds from operations (FFO) year after year, which finds its way back to shareholders in the form of an ever-rising dividend.

Here are 9 REITs likely to boost their dividends this December:

Douglas Emmett (DEI)
Dividend Yield: 2.3%

Office and apartment property owner Douglas Emmett (DEI) is much like 3M in that it typically doesn’t sport a high yield no matter how much it raises its payout – but that’s mostly because the company’s shares tend to follow the dividend higher.

Douglas Emmett is a REIT that manages to be diverse and targeted at the same time, investing in both Class A office space as well as apartment communities … but only doing so in Los Angeles and Honolulu. The lure? “Small, affluent tenants, whose rent can be a small portion of their revenues and thus not the paramount factor in their leasing decision.” In short, no one’s going to sweat premium pricing.

Shareholders hope DEI will double up on its 10% year-to-date performance with a year-end hike to the dividend. Douglas Emmett typically announces its increase early on in the month, and if it’s anything like the past few years, it should be a lift of a penny per share.

Douglas Emmett’s (DEI) Stock Is Racing Against Its Payout

Ventas (VTR)
Dividend Yield: 4.8%

S&P 500 component Ventas (VTR) is a diversified healthcare REIT that operates primarily in senior housing communities, with 669 such facilities. But its portfolio also includes 359 medical office buildings, 26 life science and innovation centers, 30 skilled nursing facilities and a few other properties. It’s also geographically diversified, owning properties not just in the U.S., but also in Canada and the United Kingdom.

This year has been a disappointing one for VTR shareholders, who saw their holdings join the market rally through late June, with nearly 15% gains – but most of that advance has been peeled away, leaving a return in the low single digits. The lackluster performance comes despite another strong year of fundamentals, including 9% growth in income from operations.

Still, Ventas should be good for some December cheer, with the REIT likely to increase its payout early in the final month of the year. Considering the company is only paying out 74% of funds from operations as dividends this year, VTR has plenty of room to work with.

Mid-America Apartment Communities (MAA)
Dividend Yield: 3.4%

A pattern you don’t often see – but that you should relish when you get the chance – is when a company’s dividend growth accelerates over time. Much more often than not, corporate boards will start to cap their payout hikes as the dividend becomes an increasingly large percentage of their earnings and cash flow. But when a company has a few breakout years, management can take the governor off the payout.

That’s the case with Mid-America Apartment Communities (MAA), an apartment-focused REIT that primarily operates in the southern and southeastern United States, as well as around the District of Columbia. While the REIT isn’t growing its dividend by leaps and bounds, the rate of growth has picked up pace over the past few years.

Another strong year could mean a more significant boost in the payout. Look for the company’s next dividend increase very early in December.

Mid-America Apartment Communities’ (MAA) Dividend Gets Legs

Universal Health Realty Income Trust (UHT)
Dividend Yield: 3.6%

Universal Health Realty Income Trust (UHT), as the name implies, specializes in healthcare-related facilities – medical office buildings make up 76% of its properties, with another 15% in acute care hospitals and the rest peppered among several other types.

The REIT is having a good but not great 2017, up about 12% year-to-date, with net income and funds from operations creeping up year-over-year. That should result in a continuation of its modest and irregular dividend increase schedule. UHT typically offers up two distribution hikes every year – one announced in June, and another traditionally offered up in the first few days of December.

CubeSmart (CUBE)
Dividend Yield: 4%

Self-storage REITs such as CubeSmart (CUBE) have had a rough time since 2016 as sky-high valuations finally caught up with the industry, resulting in a year-plus selloff. However, this group is starting to get its mojo again, and CUBE is waving the banner with a 12% gain over the past three months.

CubeSmart has delivered outstanding operational performance in 2017, including year-over-year FFO improvements ranging from high single digits to low double digits across its three reported quarters.

Coming up next? A dividend increase – one that should be announced sometime mid-month. And given outstanding payout growth of 145% over the past five years, investors can expect more than just a token step up.

CubeSmart (CUBE) Gets Into the Giving Season

Urstadt Biddle Properties (UBA)
Dividend Yield: 4.9%

Urstadt Biddle Properties (UBA) has been a lot more fun to say than it has been to own in 2017, with shares off about 10%. You shouldn’t need many chances to guess what type of properties it owns.

Yes, Urstadt Biddle is a retail REIT – one that owns shopping centers primarily outside New York City. To its credit, it has actually been growing in key metrics such as FFO this year, but occupancy has been a trouble spot, dipping every quarter so far in 2017.

A little relief is likely coming in the middle of December, when the company should dole out a small improvement to its quarterly payout.

Hannon Armstrong (HASI)
Dividend Yield: 5.5%

Hannon Armstrong (HASI) isn’t your garden-variety REIT, but considering that has resulted in returns that are far from garden-variety … I’m sure no one minds.

HASI invests in sustainable infrastructure – things like solar and wind farms. But it also helps make buildings more energy-efficient by making improvements to things such as air conditioning systems and insulation.

This is an under-the-radar growth dynamo that more than tripled its revenues between 2013 and 2016. Shares have mostly followed suit, jumping 115% since its first day of trading in 2013.

The dividend? Well, there’s clearly not much history there given its IPO was just a few years ago, but its 33-cent payout is 50% better than it was in its first full year of distributions. Another hike should come sometime in mid-December.

Hannon Armstrong (HASI) Is Heading Up, Up, Up!

W.P. Carey (WPC)
Dividend Yield: 5.9%

W.P. Carey (WPC) isn’t exclusively a wintertime dividend-raiser – it has something extra to offer investors every season. That’s right: Since 2001, every single quarterly payout from this REIT has been larger than the last.

So, what does it do?

WPC leases out business space to individual tenants under triple-net lease agreements – instead of paying things like property taxes and building insurance, it pushes those responsibilities on tenants in exchange for more predictable and cheaper rents. And W.P. Carey is pretty diversified across its 895 properties, with its largest industry type (retail) only making up 17% of the portfolio, and a wide range of other properties including automotive (8%), construction (5%) and warehouses (2%).

WPC has increased its payout for 18 consecutive years, and should make it 19 sometime in the middle of the month.

Spirit Realty Capital (SRC)
Dividend Yield: 8.6%

Spirit Realty Capital (SRC) is another triple-net lease REIT, but as the 23% year-to-date losses might indicate, it’s one that’s positioned smack-dab in the middle of the reeling retail industry.

Spirit Realty also leases out to single tenants – 431 of them at the moment, in fact – across 49 states. Its tenants include the likes of Walgreens (WBA)AMC Entertainment (AMC) theaters and Church’s Chicken franchisor Cajun Global LLC.

SRC shares took a massive hit in May after reporting an “abnormally high credit loss” and downgrading its adjusted funds from operations guidance from 89-91 cents per share to 80-84 cents. Moreover, the company in August announced plans for a spinoff of certain assets, including properties leased to retailer Shopko, to be completed sometime in the first half of 2018. So there’s a lot of noise surrounding this REIT.

However, Spirit Realty still should deliver a little extra oomph to its payout in December … likely a couple weeks into the month. That’ll only help fatten an already juicy yield of nearly 9%.

Buy These Recession Proof REITs: 2 Plays With 7.6%+ Yields and 25% Upside

One of my top REIT buys right now recently raised its dividend again by 4% over last quarter’s payout. This marks the 21st consecutive quarterly dividend hike for the firm:

Dividend Hikes Every Quarter

It pays an 8.1% yield today – but that’s actually an 8.5% forward yield when you consider we’re going to see four more dividend increases over the next year. And the stock is trading for less than 10-times funds from operations (FFO). Pretty cheap.

However I expect its valuation and stock price will rise by 20% over the next 12 months as more money comes stampeding into its REIT sector – which makes right now the best time to buy and secure an 8.5% forward yield.

Same for another REIT favorite of mine, a 7.6% payer backed by an unstoppable demographic trend that will deliver growing dividends for the next 30 years.

The firm’s investors have enjoyed 86% total returns over the last five years (with much of that coming back as cash dividends.) And right now is actually a better time than ever to buy because its growing base of assets is generating higher and higher cash flows, powering an accelerating dividend:

An Accelerating Dividend

This stock should be owned by any serious dividend investor for three simple reasons:

  1. It’s recession-proof,
  2. It yields a fat (and secure) 7.6%, and
  3. Its dividend increases are actually accelerating.

Please don't make this huge dividend mistake... If you are currently investing in dividend stocks – or even if you think you MIGHT invest in any dividend stocks over the next several months – then please take a few minutes to read this urgent new report. Not only could it prevent you from making a huge mistake related to income investing, it could also help you earn 12% a year from here on out! Click here to get the full story right away. 

Source: Contrarian Outlook

The 6 Stock High-Yield Portfolio in an Amazon World

The Amazon.com, Inc. (Nasdaq: AMZN) juggernaut has been and continues to be a disruptive force across a wide sector of the U.S. economy. Much of the financial news focuses on how Amazon’s growth may put traditional retailers out of business. The perception of massive e-commerce growth has hurt retail store and mall owning real estate investment trust (REIT) values. For the conservative income focused investor, a six stock REIT portfolio can be built to take advantage of the Amazon effect on the economy.

In spite of its two decades of rapid growth, as of mid-2017 Amazon had a 5% share of total retail sales, excluding food. In August, the company completed its acquisition of Whole Foods Markets, giving Amazon a foothold in the grocery sector. However, Whole Foods accounts for less than 2% of the grocery market. These facts lead to a pair of competing investment themes. First, with less than 5% of the total retail market, there is lots of room for Amazon to grow revenues. Second, the idea that more than 95% of retail sales happens away from the Amazon machine indicates that people still like to touch and feel before buying, that some types of retail are immune from e-commerce competition, and product companies want to have multiple outlets for the sales of those products.

Predicting the future is tough, and Amazon may succeed in taking over the world, but that is unlikely. Retail will evolve, and Amazon will be a major player and likely the biggest influence on that evolution. Let’s start two REITs each from three themes related to Amazon’s effect on the economy.

Theme #1: The financial news experts are wrong: brick-and-mortar retail will not be decimated. However, store based retail must evolve and adapt to a world of mixed direct and ecommerce sales. The one-sided reporting on this subject has led to a sell off retail property REITs and now the better companies are attractive value investments.

  • With a $50 billion market cap, Simon Property Group Inc (NYSE: SPG) is the largest publicly traded REIT. Simon owns and operates premium shopping and outlet malls. If a company needs to have retail stores, it wants to locate them in Simon run malls. The SPG dividend has been increased 15 times in the last five years, with the payout growing by 80%. This is a very successful mall operator. This stock is on sale, with a current share price down 30% from the July 2016 peak. Yield is 4.6%.
  • National Retail Properties, Inc. (NYSE: NNN) is a $6.1 billion market cap REIT that focuses on single tenant retail properties. The company owns over 2,500 stores, leased to 400 tenants operating in 40 different retail categories. Most of these categories are businesses which cannot be replaced by ecommerce alternatives. Business such as restaurants, health clubs, fuel and convenience stores and auto parts stores. National Retail Properties has increased its dividend for 28 Sconsecutive years. Dividend growth will be in a 3% to 5% annual range. NNN shares are down 19% since the 2016 high and yield 4.5%.

Theme #2: Most products sold by Amazon can’t be delivered over the Internet. Amazon’s business requires large amounts of warehouse space to fulfill and ship orders. Processing e-commerce orders takes up to three times as much warehouse space compared to the amounts needed by traditional retail for the same amount of product. Amazon possesses its own order fulfillment centers and also leases warehouse space. Companies that generate the other 50% of e-commerce sales also need warehouse space and services. These two REITs are the two largest Amazon landlords when it comes to owning large-scale fulfillment facilities.

  • Prologis, Inc. (NYSE: PLD), with a $33 billion market cap, is a global logistics giant. The company owns or partially owns properties and development projects across 676 million square feet in 20 countries spanning four continents. Industrial/warehouse REITs are one of the hot REIT sectors. These companies can easily fill new projects and realize nice rental rate growth on existing properties. Prologis has increased its dividend by 50% over the last four years. The stock yields 3.4%.
  • Duke Realty (NYSE: DRE) is an industrial REIT with a large US portfolio. Duke Realty is the largest, pure play, domestic only industrial REIT. The company owns 475 facilities in Tier 1 markets. Duke is highly focused on serving e-commerce sales and fulfillment. The company notes that projected e-commerce growth through 2020 will require almost 300 million square feet of additional industrial space. Amazon.com is Duke Realty’s largest tenant. The DRE dividends should grow by about 6% per year. The stock yields 2.6%.

Theme #3: Growth in e-commerce means growth in Internet connectivity and data storage. Amazon Web Services is the company’s primary profit source. AWS is a secure cloud services platform, offering compute power, database storage, content delivery to help businesses scale and grow. Data center REITs are the high growth beneficiaries of the paradigm shift toward cloud computing and the trends toward distributed IT architecture, co-location and connectivity. Two data center REITs offer high-speed on-ramps to Amazon Web Services, including Direct Connect in many metros areas.

  • Equinix, Inc. (NASDAQ: EQIX) is a 19-year old S&P 500 company which became a REIT in 2015. Equinix owns and operates the largest global network of data centers, which focuses on connectivity and interconnection. The company’s revenues and EBITDA are growing at a high teens annual rate. AFFO (adjusted funds from operations) per share is increasing by over 20% per year. The dividend was increased by 14% this year. Equinix also has a history of paying large stock + cash special dividends. EQIX yields 1.8%.
  • CoreSite Realty Corp. (NYSE: COR) focuses on connectivity, primarily in eight major US markets. Here are the company’s amazing annual compound growth rates for the last six years.
    Revenue: 18%
    Adjusted EBITDA: 26%
    Funds from operations: 25%
    Dividends: 35%.
    This is outstanding growth from any type of business. COR yields 3.2%.

Companies able to adapt to changing economic and business environments – like Amazon encroaching on just about every business sector – are able to not only grow when everyone else is panicking but also reward investors. The six stocks above have a history of generously raising dividends so that for early investors their yield on cost can quickly become many times higher than the advertised regular rate.

Its high flyers and high-yield dividend stocks for income that constitute the core of the portfolio holdings in my Monthly Dividend Paycheck Calendar, a system used by thousands of income investors.

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Source: Investors Alley